Retail subscription overload: Two-thirds of US shoppers can’t afford all their subscriptions
July 10 2024 - 10:00AM
With many major retail brands now offering their best deals as a
subscription, two-thirds (66%) of US shoppers can’t afford all of
the subscriptions they would like. That’s according to research
from Bango that delves into American shoppers’ habits and attitudes
towards subscription services.
Surveying 3,000 Americans with a retail subscription, the
research follows the launch of Target’s new membership program –
Target Circle 360 — a membership subscription designed to enhance
the shopping experience at Target by making it more convenient and
affordable.
Target is the latest retailer to launch a subscription service,
following in the footsteps of Walmart+ and Amazon Prime. These
services, designed to provide greater customer value, are all
changing the way consumers shop in the US.
Shoppers already have 5 subscriptions on average. Faced with
more and more choice when it comes to retail subscriptions, with
the additional choice frustrations are growing. Half (50%) of
consumers surveyed are “annoyed” that they can’t manage all of
their subscriptions in one place. As a result, 76% say they want
one app to manage all of their subscriptions in one place.
Super Bundling
Bango predicts that as retail subscriptions become more
commonplace, ‘Super Bundling’ — where multiple subscriptions are
bundled into one package — will increasingly break into the retail
space.
As explained by Juniper Research, Super Bundling services
consist of a single payment to a service aggregator such as a telco
for several subscriptions through a single online subscriptions hub
— with one high profile example being the Verizon +play content
hub. This allows consumers to enjoy easier management of their
subscriptions and fewer card-on-file payments throughout a billing
period.
Research by Bango reveals that all signs point towards a market
opening up for Super Bundling in retail, as almost a third (31%) of
shoppers already get their subscriptions as part of a bundle,
rather than going direct to the subscriptions provider.
Commenting on these findings, Anil Malhotra, CMO of Bango said,
“The way we shop is changing — again. The rise of subscription
boxes and same-day delivery has transformed retail in recent years.
And as more retail giants begin to develop their offerings and
drive loyalty through subscriptions, it’s only natural that they
will look to enter the Super Bundling space.
“Already, retail subscriptions like Walmart+ in the US offer
Paramount+ as a bundle and in Europe Carrefour Plus bundles
Netflix. This is just the beginning of a much more widespread
shift.”
To find out more about the subscription trends of shoppers in
the US, read the full story here.
About BangoBango enables content providers to
reach more paying customers through global partnerships. Bango
revolutionized the monetization of digital content and services, by
opening-up online payments to mobile phone users worldwide. Today,
the Digital Vending Machine® is driving the rapid growth of the
subscriptions economy, powering choice and control for
subscribers.
The world's largest content providers, including Amazon, Google
and Microsoft trust Bango technology to reach subscribers
everywhere.
Bango, where people subscribe.
www.bango.com
Media contactHenry Soundy / Trisha
BahlWildfirebango@wildfirepr.com
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